Richard E. Agee founded Wapiti Energy, LLC in 2000 on the heels of his successful sale of Antara Resources, Inc. In Wapiti’s early years, it acquired non-operated working interests in the Conroe Field, located 5 miles southeast of Conroe, Texas and just north of Houston, Texas. Discovered by George W. Strake in 1931, Conroe Field’s history includes the cumulative production of over 735 million barrels of oil and 1.4 trillion cubic feet of gas. However, by the early 2000s, conventional wisdom was that the field would be plugged and abandoned following Exxon’s blow down of the gas cap in the late 1990s. Yet, Richard Agee suspected that conventional wisdom was wrong and held a firm belief in an opportunity yet unmasked.
With this firm belief in opportunity that Richard Agee uncovered, his son, Bart Agee, joined forces with Wapiti in 2005 to lead a major expansion of the company. Wapiti continued acquisition activities and, by early 2006, it owned approximately 39% of the working interest in the Conroe Field. In August 2006, after 6 months of negotiations, Wapiti acquired Exxon’s operated interest in the Conroe Field Unit. At the time of this transaction, Wapiti brought on Quantum Energy Partners, a private equity firm dedicated to the energy space, and D.E. Shaw as minority equity partners in Wapiti.
Between 2006 and 2009, Wapiti doubled production, increased 3rd party reserve estimates by 12%, shot the 3D seismic survey on the field, tripled the salt water disposal capacity and prepared the field for the next phase of its producing life.
In December 2009, Wapiti sold Conroe Field to Denbury Resources, Inc. for approximately $431 million. Denbury plans to conduct a CO2 flood of this massive field.. Wapiti is extremely proud of its time as the operator of Conroe Field, one of Texas’ historic oilfields.
In July 2010, Wapiti Oil & Gas, LLC was formed to purchase properties in Texas, Colorado, Wyoming and Utah. This package of producing properties and large acreage positions produced many attractive exploitation and exploration opportunities. Wapiti Energy teamed with Zell Credit Opportunities Fund and Mantucket Capital to form this new company.
A portion of the non-producing acreage acquired by Wapiti Oil & Gas was in the Eagle Ford Shale area of South Texas. The acreage was made up of multiple leases from one rancher which were close to expiration. The multiple leases caused Wapiti to commit to a capital budget in excess of $90 million to drill the at least 12 wells in 2012. The rancher preferred a slower paced development and pushed Wapiti to negotiate with the other lease owner on the ranch. After a significant amount of negotiation, Wapiti surrendered its operated leasehold on a portion of the ranch in exchange for a non-operated leasehold position in the entire ranch, thus placating the rancher, creating a true win-win situation. The new lease also extended the term by approximately two years. In November of 2011, Wapiti sold this lease to a large independent for over $100 million.
In March 2012, Wapiti Oil & Gas II, LLC was formed in order to purchase and develop Uinta Basin producing oil & gas assets. Wapiti provides operational leadership and technical support along with funding of an extensive exploration and development program across a 100,000+ acre leasehold. Wapiti Energy has continued its strong partnership with Zell and Mantucket to fund this opportunity.
In December 2012, Wapiti Energy, LLC and Wapiti Oil & Gas, LLC sold East Texas oil & gas properties to Argent Energy Trust for $120 million.
Wapiti Energy Holdings, LLC was formed in May 2013 in order for its wholly owned subsidiary, Wapiti Energy OpCo, LLC, to purchase $375 million of oil and gas assets in a privately negotiated transaction. Wapiti partnered with Carlyle, Wells Fargo, and Scotia to raise the capital necessary to close the transaction. These long-lived reserves are located in Texas, Louisiana, and North Dakota. Wapiti plans to continue its focus on driving value creation through operational excellence (technical competence, capital discipline and cost control).
Learn more about Wapiti Energy’s track record.